In 2012, the Indonesian government increased minimum wages across the country. These increases range from three to 30 percent, depending on the province, with the most significant change seen in Kota Tangerang and Kabupaten Tangerang: 30.39 percent and 30.93 percent, respectively.
In a country where gross annual income can be as low as $54, this wage adjustment would greatly benefit employees – however, some employers worked with the Employer Association (APINDO) to challenge the increases. The involved parties produced a vaguely worded agreement that may waive the wage increase ruling for small businesses.
The FLA Workplace Code of Conduct unequivocally states that payment of the legally established minimum wage is not optional and cannot be modified through alleged waivers negotiated by employers and unions. Members with suppliers in Indonesia, particularly in the industrial areas of Bekasi, Purwakarta, and Tangerang, should take immediate action to ensure that workers receive the legally established minimum wage.
The importance of this issue and the need for companies to take action was communicated in a memo to FLA members this month.
More FLA News
-
Fair Labor+2Human Rights Due DiligenceResponsible Purchasing
FLA launches two-year Collegiate Retailer Program pilot
July 9, 2026 View FLA launches two-year Collegiate Retailer Program pilot -
Just Transition+4Forced LaborHealth Safety & EnvironmentHuman Rights Due DiligenceResponsible Purchasing
Fair Labor Highlights - July 2026
July 8, 2026 View Fair Labor Highlights - July 2026 -
Advocacy+1Forced Labor
FLA and AAFA submit comment to U.S. Trade Representative on proposed action in Section 301 investigations
July 7, 2026 View FLA and AAFA submit comment to U.S. Trade Representative on proposed action in Section 301 investigations